Advisory Board May 30, 2024
As providers face higher costs and increased payer denials, payers are facing higher medical costs as these providers charge more for services, resulting in increasingly contentious contract negotiations between the two sides, Caroline Hudson reports for Modern Healthcare.
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Why disputes between providers and payers are getting worse
The key driver for providers taking a more hardline stance in negotiations is inflation, Hudson reports. In 2021, the U.S. inflation rate spiked at 7% and now sits between 3% and 4% — a fluctuation that’s made it more difficult for providers to predict their future costs, especially when negotiating multiyear agreements.
Chicago-based CommonSpirit Health said earlier this month that it intends to take a “firmer...
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